| Show me another |
|
purchased a flat Jan 07 by loan from bank .it is under contruction.Am i entitled for tax rebate
|
|
The flat was registered in Jan.07 in the name of my son, daughter-in-law, myself and my wife. The first 2 are NRI.The loan is in the name of all the four.The EMI is paid by me as well as my son. My wife is house-wife.The builder has not given the possession of flat so far which will take another 4-6 months.I just wanted to know whether tax benefit in terms of interest and principal amount paid to bank is admissible to me or not.I am a pensioner.
|
|
In
Home Loans
-
Asked by R.N.Pal -
1 year ago
|
Best Answer:
Yes you can claim tax benefit on the loan. If your bank has given you full loan even if the construction of the house is not complete. In this case, you start paying the EMIs straightaway. But you do not get any income tax benefit on the principal amount for the EMIs that you paid before getting possession of your house (as principal component can be claimed only after you get possession of the house).
Therefore you can start claiming the income tax benefit of the principal amount u/s 80C starting from the financial year in which you get the possession of the house.
The interest component of the EMIs that you paid before getting possession of your house should be treated similar to pre-EMI interest. Thus, you should add up all the interest that you paid through EMIs before you got the possession of the house, and start claiming 20% of it each year (for 5 years) starting from the financial year in which you got the possession of the house. For your help pre-EMI interest is paid when bank has disbursed a partial amount to you / builder depending on the stage of construction of the house.
1 year ago - By Dinki
|
|
